medium · Volume Spread Analysis climaxes-tests-springs-upthrusts
In a bullish two-bar reversal, what does it mean if the second bar (the up-bar) has significantly lower volume than the first bar (the down-bar)?
- Market-makers are trapping eager buyers with this low-volume bounce
- The supply was fully removed on the first bar, requiring little effort to rise
- The rally is fake and the underlying market will most likely fall further from here
- Professional money is still actively selling into strength on the second, up-closing bar
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